Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from operations declined.Which of the following could explain this performance?

Question

Quizplus · Accepted Answer

The increase in net income and decrease in net cash flow from operations could be due to a decline in the company's depreciation and amortization expenses, which are non-cash expenses that are added back to determine cash flow. This would result in a higher net income but a lower net cash flow from operations.

Aubey Aircraft Recently Announced That Its Net Income Increased Sharply